Cav:
It is likely Siegel had no choice but to accept the terms from the financiers. The financiers knew of the loan guarantee requirements, which now appears to be the same for both UA and US.
Without target labor cuts there will be no loan guarantee. Without the loan guarantee there will be no emergence financing to restructure, thus we could see a fragmentation/liquidation.
It is likely BOA, as a US loan guarantee consultant, CSFB, and TPG would not risk their capital, for a sinking ship. Would you?
Why should the investors put their money at risk if labor is unwilling to meet the conditions set forth by the ATSB per the percentage target concessions?
In regard to bonus payments, do you want good management to get higher profit sharing checks or bad management that could cause the airline to fail or deeper employee cuts to survive?
Again, it does not matter what happened in the past, who represents what group, the "pork", or if the company paid for negotiations.
Also noteworthy per an IAM letter written to all members on August 26, the IAM said, "Prior to the receipt of US Airways’ restructuring proposal(s), an agreement regarding reimbursement of professional expenses was reached between the carrier and unions representing ALPA, AFA, & the IAM.
US Airways agreed to pay all fees and expenses incurred by each union’s legal and financial advisors during discussions leading up to any restructuring proposal." See the letter below).
In my opinion, without the $1.25 million so called "pork payment", in what some IAM-M members object to, the membership could have to have been accessed a financial payment to cover the IAM legal and financial advisor expenses. Therefore, to vote no and against the restructuring agreement over this expense, to pay for your experts is confusing at best.
Without the $154 million IAM and $70 million CWA cut, either voluntarily obtained or court ordered, the agreements required by TPG, CSFB, BOA, and the ATSB will become void and 36,000 employees could lose their job when the company is forced by labor to liquidate without court intervention.
In my opinion because the parties know the risk, there could be an out of court settlement on the Section 1113 motion or the court will order current contracts null and void, which may enable the company to seek deeper cuts to further lower its CASM.
Chip
August 26, 2002
To All IAM Members at US Airways
Dear Sisters and Brothers:
In response to questions raised by members during recent meetings in Charlotte, Pittsburgh and Philadelphia, the following information is provided regarding company payment of union expenses during discussion of restructuring plan(s) at US Airways.
Prior to the receipt of US Airways’ restructuring proposal(s), an agreement regarding reimbursement of professional expenses was reached between the carrier and unions representing Pilots, Flight Attendants and Machinists.
US Airways agreed to pay all fees and expenses incurred by each union’s legal and financial advisors during discussions leading up to any restructuring proposal. The airline also agreed to continue paying such professional expenses during the implementation of any plan approved by US Airways employees.
The IAM believes its members’ dues dollars are intended for costs related to traditional contract bargaining and representation. The complex restructuring plan proposed by US Airways is not traditional collective bargaining. We believe it is our responsibility to protect our members from expenses incurred as a result of the ongoing restructuring debate at US Airways.
However, our responsibility to fully examine US Airways’ restructuring proposal is not diminished by the circumstances that brought it to pass. Accordingly, we selected legal and financial advisors to evaluate the company’s proposals – trusted analysts who would then provide the benefit of their study to union members and representatives.
We will continue to advise US Airways members regarding all aspects of the important discussions taking place between the IAM and US Airways. Our commitment to you is to provide good representation, sound advice and an aggressive defense against any unwise or unnecessary expenditure of member’s dues dollars.
In solidarity,
S. R. (Randy) Canale
President and General Chairman
District 141